The case for employee engagement: why small businesses need an HR business partner

Have you ever felt that sinking feeling when a talented employee hands in their resignation, or the frustration of watching a team go through the motions, lacking the spark to propel them to greater achievements? What if there was a way to turn the tide – to foster a workplace where employees are motivated, enthusiastic, and invested in the company's success? Employee engagement is the key to a company’s viability and sustainable growth, and maintaining it requires an understanding and specialisation of the HR function. We’re sharing food for thought on what we think is a topic that affects all of us. If you manage a team, or do business consulting work to support the MSME sector, you’d better keep reading!

What is employee engagement, and why does it matter?

Employee engagement goes beyond simply showing up to work. It's about feeling connected to the company's mission, having a sense of purpose in your role, and being motivated to contribute your best effort. Engaged employees are passionate advocates for the company, driving innovation, productivity, and overall success. Think of it this way: a company is like a car. Disengaged employees are like a flat tire – they slow you down and make it difficult to reach your destination. Lack of recognition, limited growth opportunities, or inadequate compensation can make employees feel that their contributions are unseen. Long hours, inflexible schedules, or a lack of support for personal needs can lead to burnout and decreased motivation. Unclear instructions, conflicting messages, or a lack of transparency can create confusion, frustration, and hinder teamwork.

Team-members and one’s own skill preparedness can also affect an individual's attitude towards their company. Toxic work ethos, a lack of collaboration, or a negative company culture can make coming to work a chore. Feeling stuck in a dead-end job or lacking the skills needed to advance can lead to a sense of helplessness and a desire to leave. People don't want to remain stagnant in their careers. Employees want to know that if they are vested in their company’s growth, their company will also be committed to their development. Engagement is a two-way street.

The rationale for strategic HRM

HR and people professionals play a major role in this engagement process. They are responsible for fostering a healthy working environment, tools and incentives for employees to be motivated and contribute to increased productivity. Confusing or outdated policies create frustration and inconsistency. Lack of clear communication between departments or from leadership to employees fosters a sense of disconnect and distrust. Important information gets lost, deadlines are missed, and morale suffers. Cumbersome processes and outdated systems slow down productivity. Employees get bogged down in administrative tasks, leaving less time for core responsibilities.

Without a clear system for setting goals, providing feedback, and conducting performance reviews, employees lack direction and motivation, leading to a sense of stagnation and a lack of engagement. Employees who don't feel supported in their professional development become disengaged and less productive. Without opportunities to learn new skills or advance their careers, employees look elsewhere for growth, which threatens the viability of any organisation. Employee engagement is a critical factor in driving business success, and that is why strategic human resource management (SHRM) is so important.

Ulrich’s HR business partner model

Though measures like staff headcount are important for business functionality, in focusing on these metrics, businesses overlook important human resource issues that are needed for organisational development, like the organisation’s capacity to manage change, managers’ skill competency, and employee motivation (Weiss and Finn, 2005). By understanding the causes of disengagement and implementing targeted strategies, businesses can transform their staff complement into a motivated, productive, and committed workforce. Towards this, David Ulrich’s HR business partner model advocates for the HR role to be evolved into four specialised roles: the strategic partner, administrative expert, change agent and employee champion. We consider each of the roles below.

1. Strategic Partner

Think of the strategic partner as the future-oriented, high level HR officer. This person should sit in on regular meetings with the Managing Director or CEO of the company, translating the business strategy into HR policies that support the management and development of its workforce.

To devise sustainable HR policies, they must review existing policies and procedures, identifying gaps and inconsistencies. Strategic partners ought to design and execute a communication strategy that ensures clear and consistent messages are sent across all levels of the organisation, and analyse workflows to identify areas for streamlining and efficiency. They should provide guidance in the implementation of new systems and processes that save time and improve productivity. They should optimise performance management systems, revising goals, ensuring systems for providing ongoing feedback, and regular performance reviews.

2. Administrative expert

This is the role we are familiar with – the person managing the day-to-day HR processes including payroll, maintaining updated staff databases and job advertising. Though more internally facing than the strategic partner, the admin expert is crucial; no organisation can run well without adequate operational management of its staff. The role requires comprehensive knowledge of HR practices, and the ability to carry out these functions with efficiency.

3. Change Agent

Change management is a skill that businesses are increasingly seeking in recent years, reflecting the increased recognition that in order to sustain operations and business advantage, organisations need to have the capacity to assess the change required and to develop and execute those strategies effectively. Important in this change is the ever-imposed question about company culture - how can they change it for the better? The international workforce is a diverse one, with people of different backgrounds, abilities and needs. A competent change agent has their ears to the ground, and is able to recommend and lead shifts in company culture with competence.

4. Employee Champion: Empowering and Advocating for Your People

Diversity, equity and inclusion roles? Employee resource groups? Yes! They have come about because of the increasing recognition of the importance of the employee and their wellbeing. A happy and healthy team makes for a productive organisation.

Employees feel valued and motivated when they see opportunities for growth and learning. When employers invest in training programs, mentorship and other development initiatives for their staff, employees are empowered to develop their skills and advance in their careers. When employees are kept in the dark about company goals, strategies, and decisions, it breeds distrust and disengagement. Leaders who communicate openly and transparently create an environment of trust and collaboration. Organising regular meetings, encouraging employees to participate in decision-making processes, and entrusting them with meaningful tasks can foster a sense of ownership and responsibility. Empowering employees to take initiative and contribute ideas can lead to greater innovation and engagement. Tools like employee surveys, focus groups, and one-on-one meetings can provide valuable insights, and analysing this data helps to refine HRM strategies, ensuring that they are effective. Career coaching for individual staff members is also worth considering, to empower employees to take ownership of their professional journeys within the company. This will help them identify and articulate career goals, develop their skill sets, and navigate internal opportunities.

HRM in the MSME sector

Given their size, micro, small and medium businesses have less specialised roles, requiring employees to be jacks and jills of many trades to cover multiple portfolios. It applies to the HR officers in these organisations, who have to be all rounders, functioning in both operational and strategic roles (Professor Chris Brewster in CIPD, 2007b).

This is where outsourced business development support from public and private development banks, business development agencies and business consulting firms is essential, especially for MSMEs in developing countries, such as those in the Caribbean. These business support entities can stand the gap, acting as HR business partners and collaborators for other important corporate functions. At the heart of this, of course, is the effective stewarding of employees. They are a company’s greatest asset, and now more than ever, is the time to affirm this in company action.

When seen through the lens of strategic HRM, employee engagement isn't a luxury, it's the cornerstone of a successful organization.While employees crave a sense of purpose, growth opportunities, and recognition, employers must create the environment that fosters these desires. This includes clear communication, streamlined workflows, effective performance management, and a commitment to professional development. Engaged employees are the backbone of thriving organisations, driving productivity, innovation, and customer satisfaction. The journey towards a more engaged workforce begins with clear leadership, a positive work environment, and open communication. By fostering career development, and empowering employees to take initiative, businesses can create a culture of engagement and enthusiasm. Regularly monitoring and adapting these strategies ensures they remain effective in changing business landscapes. Engaging your workforce truly is the key to energising your business.

If you are looking for support in human resource management and employee engagement, book a consultation with us today at calendly.com/zlhforbusinesses